Cuentas Inc. Annual Report - How They Did This Year

This guide helps you understand Cuentas Inc.’s performance. Think of this as a cheat sheet to help you decide if this company fits your investment goals.

1. What does this company do?

Cuentas is building a "total package" for mobile users by combining phone services with digital media. They operate in two main areas:

• Mobile Telecommunications: Through their joint venture, World Mobile, they provide voice, text, and data. They use a "DePIN" model, which uses blockchain technology to let users share mobile connectivity and earn rewards. This aims to lower costs compared to traditional phone companies.
• Entertainment Media: Through World Mobile Media Group, they are building a platform for live events, celebrity content, and streaming. They plan to make money through pay-per-view fees, subscriptions, and ads.

2. How did they perform this year?

The company is in a major "reset" phase, focusing on saving cash by dropping non-core projects.

• Selling Assets: They exited the real estate business by selling their stake in the Florida "Cuentas Casa" project. They used the money to pay debts and fund daily operations.
• Fintech Restructuring: They licensed their old prepaid debit card and banking assets to a company run by a former executive. This removes the high costs of running a regulated financial platform, allowing Cuentas to focus its limited cash on mobile and media development.
• Financial Status: The company is not yet making money from its new strategy. Most spending goes toward software, network setup, and office costs. Management plans to start marketing and service availability in Q2 2026.

3. Major wins and challenges

• The Win: They partnered with World Mobile Group Ltd, a global decentralized network. By using this existing infrastructure, Cuentas avoids the massive cost of building a cellular network from scratch. They hope to tap into the partner’s 3 million daily users.
• The Challenge: Cuentas is entering a crowded market. They compete with established brands like Cricket, Mint, and Boost, which have huge marketing budgets. Because Cuentas has little cash, they must secure outside funding to survive until their 2026 launch.

4. Future outlook

The company’s roadmap centers on the Q2 2026 launch of their integrated services. Current goals include installing "AirNodes"—hardware that provides network coverage—across the U.S. and finalizing software deals to connect the World Mobile app with their media platform.

5. Key risks

This is a high-risk investment. Please consider these factors:

• "Going Concern" Warning: The company’s financial reports include a warning that they may not have enough money to stay in business for the next 12 months without raising more cash.
• Execution Risk: The company is shifting from fintech and real estate to decentralized telecom. There is no track record to prove they can attract and keep mobile customers.
• Capital Intensity: Marketing and technical integration are expensive. If they cannot raise enough money, they may have to delay the launch or shut down.
• Competitive Disadvantage: Cuentas lacks the massive marketing budgets of major phone companies, making it very difficult and expensive to win new customers.

Final Thought for Investors: Cuentas is currently a "turnaround" play. They have moved away from their previous business lines to focus entirely on a 2026 launch of a decentralized mobile and media platform. Because they are currently burning cash and lack a proven track record in this specific industry, your decision should weigh whether you believe their partnership with World Mobile can successfully disrupt the current telecom market before their existing capital runs out.